Scepticism over Greek debt deal

Written By Unknown on Senin, 16 Februari 2015 | 19.15

16 February 2015 Last updated at 09:26

European finance ministers will meet in Brussels later amid increasing scepticism that a deal over Greece's debt problems can be reached.

Greece wants to restructure its debt repayments and economic targets.

But the International Monetary Fund (IMF) and European Union (EU) say there should be no change to the country's €240bn (£178bn) bailout.

German finance minister Wolfgang Schaeuble said on Monday he was not optimistic a deal would be reached.

Mr Schaeuble told German radio: "From what I've heard about the technical talks over the weekend, I'm very sceptical, but we get a report today and then we'll see."

He added Germany did not want Greece to leave the eurozone, but that the new government had to fulfil "the minimum of the claims".

"The problem is that Greece has lived beyond its means for a long time and that nobody wants to give Greece money any more without guarantees," Mr Schaeuble said.

'Difficult negotiations'

Greek Prime Minister Alexis Tsipras told Germany's Stern magazine at the weekend that his government needed time to carry out reforms and put the mismanagement of the past behind it.

"I expect difficult negotiations; nevertheless I am full of confidence," he said. "I promise you: Greece will then, in six months' time, be a completely different country."

Greece has proposed a new bailout programme that involves a bridging loan to keep the country going for six months and help it repay €7bn (£5.2bn) of maturing bonds.

The second part of the plan would see the county's debt refinanced. Part of this might be through "GDP bonds" - bonds carrying an interest rate linked to economic growth.

Greece also wants to see a reduction in the primary surplus target - the surplus the government must generate (excluding interest payments on debt) - from 3% to 1.49% of GDP.

In Greece last week, two opinion polls indicated that more than three-quarters of Greeks supported Mr Tsipras's hardline stance.

According to the polls, 79% of Greeks backed the government's policies and 74% believed its negotiating strategy would succeed.

Meanwhile, European Commission President Jean-Claude Juncker held a phone conversation on Sunday with Mr Tsipras at the Greek prime minister's request, an EU official said.

"President Juncker is making a last effort in an extremely difficult situation," the official told Reuters. But they played down hopes of an agreement at Monday's meeting.


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